Category Archives: Investing

Mindless Money 3/5: Hold the Big Picture

The key phrase here is situational awareness.  It’s about having the big picture as well as the focused analysis.  The world, even that part of it tracked by stockmarkets, is a complex adaptive system made up of many working parts.  … Read More

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Mindless Money 2/5: Don’t Oversimplify

Simplifying things is what we do, habitually.  The world is too complex, too multi-faceted for us to do anything else.  We develop a specific, individual mindset which we use to frame the world we operate in.  Sometimes this is a … Read More

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Mindless Money 1/5: Focus on Failure

Tim Richards is away, analysing the Eurozone crisis from the lofty vantage point of a Alpine bar. In the meantime this is a series of mini-posts on how to avoid the worst faults of the behaviorally compromised investor based around the … Read More

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A Tall Tale of Risk Aversion

Dead or Alive, It’s all the Same Amos Tversky’s and Daniel Kahneman’s 1981 paper on The Framing of Decisions and the Psychology of Choice demonstrated that people are risk averse in situations involving potential gains and risk takers in situations involving … Read More

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High yield debt defaults rise but performance stays strong

Posted on by QFINANCE

In its latest reports on US and European high yield corporate debt, the ratings agency Fitch flagged up the fact that the trailing 12-month default rate on this asset class rose above 2% for the first time since October 2010, … Read More

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Three ways to profit from bear markets

Most value investors already know why bear markets are an investor’s best friend.  Bear markets may be scary, but they’re the best time to pick up wonderful businesses at attractive prices. Why the best time?  Because in a bull market … Read More

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Is alienation the answer?

Capitalism makes it possible to exchange anything for virtually anything else.  All objects become commodities with cash values.  But people get attached to things. Caring more about the personal meaning of their possessions – or their beauty or uniqueness — … Read More

Posted in Investing, Luxury goods, Psychology | Leave a comment

Bad Traders Are as Responsible as Governments for the Current Sovereign Debt Mess

The emphasis of the blame for the current financial situation across the eurozone has been put on governments for issuing large amounts of debt, which have become excessive to the point of collapse. However I am not so sure they … Read More

Posted in Financial crisis, Investing, Regulation, Risk, Trust | 9 Comments

Listed Private Equity: A great example of market innovation?

Posted on by QFINANCE

Financial innovation got a very bad name following the 2008 crash, when monstrosities such as “CDO cubed” were seen as adding massive toxicity to the huge volume of asset backed securitizations being cranked out by the big US banks. However, … Read More

Posted in Investing, Markets, Returns | Leave a comment

Eurozone: Investors switching to cash

So another week has passed with the markets rising in relief at some good news (Spanish banks being bailed out or ‘Spailout’ as someone suggested on Twitter) only to fall again, within minutes it seemed, as reality set in. And … Read More

Posted in Eurozone, Investing, Returns, Risk, Trends | Leave a comment
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